Breaking: France giants Olympique Lyon handed provisional Ligue 2 relegation and transfer ban
French giants Olympique Lyon have been handed a transfer ban and a provisional relegation to Ligue 2. The seven-time top-flight champions' financial struggles over the past few months culminated in this decision, which was announced by French financial authority DNCG.
According to sports daily L'Equipe, OL were supposed to appear in front of the DNCG on Friday (November 15) to discuss the future course of its administration. L'Equipe's report claimed that Les Gones believed they could convince the authorities of a better financial standing towards the end of the 2024-25 campaign.
Lyon is owned by Eagle Football Holdings Ltd., which is headed by chairman John Textor. The company is also the leading shareholder in other football clubs like Premier League side Crystal Palace, Brazilian club Botafogo, and Belgian outfit RWD Molenbeek.
To guarantee their financial security, OL were reportedly planning to sell some of their own players or those of Botafogo. They were even willing to go the distance by selling their 45% stake in Crystal Palace if needed.
However, the overall debt of the Eagle Group rose from €458 million to approximately €508 million. This was enough to convince the DNCG to deliver the verdict, which was revealed in a statement on Friday, November 15.
To prevent their provisional relegation from getting executed upon the conclusion of the 2024-25 campaign, Lyon will have to part ways with their prized possessions in the winter. Exciting young talents like Rayan Cherki (21), Ernest Nuamah (21), and Malick Fofana (19) will likely have to depart to ensure the club's survival.
Lyon currently sit fifth in Ligue 1 with 18 points secured after 11 rounds of league fixtures. Unless they recover their funds by the end of the season, they will be dropped down to the second tier irrespective of their league finish.
Olympique Lyon could face similar fate as former Ligue 1 club did at start of 2024-25 campaign
Olympique Lyon will have to act promptly and decisively in order to maintain their top-flight status. They could be handed a transfer ban and a provisional relegation to Ligue 2.
Another former Ligue 1 side Girondins de Bordeaux dropped down the pyramid to the fourth tier of French football in August 2024. The struggling club was unable to find €40 million by the end of the 2023-24 campaign, which resulted in a three-tier relegation.
France football's financial watchdog, DNCG, have rejected OL's pleas along similar lines. The authority have banned the side from making transfers, and have also announced a provisional relegation at the end of the 2024-25 season.
If the French giants are unable to raise the funds required to keep them afloat, the relegation will be brought into effect. While the off-field controversies continue to boil, OL's upcoming action on the field will be from their league fixture against Reims on November 23.